August 31, 2020 Newsletter

Dear Friends,

Tangents:
1896 – gold discovered in the Klondike.
On Aug. 31, 1997, Britain’s Princess Diana died in a car crash in Paris at age 36.  Go to article »

Japanese company successfully tests a manned flying car for the first time.  Finally, we’re one step closer to the cool future we were promised. –CNN.

An animal that roamed with the dinosaurs went into a hibernation-like state to survive.  Quarantine goals-CNN

The world’s most spectacular festivals –Let’s not forget what it feels like to be together in celebration — eating laughing, making art and hey,
maybe even enjoying some fireworks. (Click here to view). -CNN.

Malawi is often overshadowed by its better-known neighbors in southeastern Africa: Tanzania, with its abundant wildlife; Zambia, with Victoria Falls; and Mozambique, with its picture-perfect beaches.
The country, in fact, has plenty of natural beauty. But, for the photographer Marcus Westberg, it wasn’t the landscapes that made a lasting impression — but the people.
Here are some of his photographs, paired with an essay by him. Whether on assignment or going to the market for vegetables, he writes, “time and time again I have found myself staying far longer than intended.” –The New York Times.

PHOTOS OF THE DAY

Yann Elies, Queguiner Materiaux – Leucemie Espoir 19, competes during the first stage of the 51st edition of La Solitaire du Figaro solo sailing race, off the coast of Saint-Quay-Portrieux, in Saint-Brieuc Bay, northwestern France.
CREDIT: LOIC VENANCE/AFP VIA GETTY IMAGES

Honda CB R1000 R Formula EWC N°5 French rider Mike di Meglio competes in the lead during the 43rd Le Mans 24-hours endurance moto race in Le Mans, north-western France.
CREDIT: JEAN-FRANCOIS MONIER/AFP VIA GETTY IMAGES

A woman picks jasmine flowers at a village in Gharbiya province, Egypt.
CREDIT: XINHUA/SHUTTERSTOCK

Dancers from The Royal Ballet perform beside the Regent’s Canal in London on August 30, 2020, one of three performances they put on daily on weekends to experience performing in front of a live socially-distanced audience.
CREDIT: ISABEL INFANTES/AFP VIA GETTY IMAGES

Market Closes for August 31st, 2020 

International Markets

Bonds

Currencies

Commodities

Market Commentary:
With last week’s rally, the Dow returned to positive territory for the year for the first time on a closing basis since February. It is up 0.4% for the year, while the S&P has added 8.6% in 2020 and the tech-laden Nasdaq has surged 30%. 
Canada
By Michael Bellusci
(Bloomberg) — Canadian stocks retreated for a third day, with information technology among the few gainers. The S&P/TSX Composite Index fell 1.2%, the most since June 26. Nine of 11 sectors declined, with tech and materials higher. Silver rounded out the longest run of monthly gains since 2010 as investors sought a haven in precious metals. Canada’s summer rebound may fizzle out this fall as months of high unemployment and uncertain business take their toll, according to the global chief economist of Manulife Investment Management. On the deal front, Whitecap Resources Inc. gained 1.6% after buying NAL Resources Limited, a deal that analysts viewed positively, saying it added scale. Canada has agreed to buy more than 100 million Covid-19 vaccinations from Novavax Inc. and Johnson & Johnson, Prime Minister Justin Trudeau said Monday.
Commodities
* Western Canada Select crude oil traded at an $11.25 discount to West Texas Intermediate
* Spot gold rose 0.2% to $1,968.65 an ounce
FX/Bonds
* The Canadian dollar strengthened 0.4% to $1.3047 per U.S. dollar
* The 10-year government bond yield edged lower to 0.628%

By Bloomberg Automation:
(Bloomberg) — The S&P/TSX Composite fell for the third day, dropping 1.1 percent, or 191.35 to 16,514.44 in Toronto. The move was the biggest since falling 1.7 percent on June 26. Today, financials stocks led the market lower, as 9 of 11 sectors lost; 169 of 221 shares fell, while 48 rose. Royal Bank of Canada contributed the most to the index decline, decreasing 1.7 percent. Norbord Inc. had the largest drop, falling 6.0 percent.
Insights
* This month, the index rose 2.1 percent
* The index advanced 0.4 percent in the past 52 weeks. The MSCI AC Americas Index gained 19 percent in the same period
* The S&P/TSX Composite is 8.1 percent below its 52-week high on Feb. 20, 2020 and 47.8 percent above its low on March 23, 2020
* The S&P/TSX Composite is down 0.7 percent in the past 5 days and rose 2.1 percent in the past 30 days
* S&P/TSX Composite is trading at a price-to-earnings ratio of 25.4 on a trailing basis and 24.1 times estimated earnings of its members for the coming year
* The index’s dividend yield is 3.2 percent on a trailing 12-month basis
* S&P/TSX Composite’s members have a total market capitalization of C$2.55t
* 30-day price volatility rose to 10.16 percent compared with 9.46 percent in the previous session and the average of 11.01 percent over the past month
================================================================
| Index Points | | Sector Name | Move | % Change | Adv/Dec
================================================================
Financials | -74.5086| -1.5| 4/21
Energy | -49.0351| -2.4| 1/23
Industrials | -26.9058| -1.4| 3/24
Consumer Discretionary | -16.5427| -2.9| 0/13
Communication Services | -15.4464| -1.8| 0/8
Consumer Staples | -12.1905| -1.8| 0/11
Real Estate | -9.3093| -1.8| 3/23
Utilities | -6.6392| -0.8| 5/11
Health Care | -1.5563| -1.0| 3/6
Materials | 2.8457| 0.1| 27/21
Information Technology | 17.9441| 1.1| 2/8
US
By Vildana Hajric
(Bloomberg) — Most stocks fell after China threw a wrench into U.S. companies’ efforts to buy TikTok, while a jump in Apple Inc. powered the Nasdaq 100 to a record high. The Dow Jones Industrial Average led losses after its components were revamped, with Microsoft Corp. and Walmart Inc. slumping on concern China could block a possible sale of the video app. Apple Inc.’s surge as the stock split 4-for-1 lifted the Nasdaq 100 past 12,000 for the first time. Two stocks fell for every one that rose on the S&P 500, but the index notched a fifth consecutive monthly advance. With the S&P 500 up 7% and 10-year Treasury yields almost 20 basis points higher this month, traders have taken comfort in the global economy’s recovery from virus shutdowns and relentless gains in tech shares. Still, with U.S. infections ticking up again and India becoming the world’s epicenter for new cases, the pandemic is far from beaten and investors will be scouring data this week for clues on the outlook.
“To add equity exposure here is doing so at a time where the market is priced for perfection,” said Dave Donabedian, chief investment officer of CIBC Private Wealth Management. “To bet against the market here is a fool’s errand because you’re going against the Fed and a tide of liquidity.” The Dow Industrial’s composition changed Monday after Apple’s split, with the iPhone maker’s weighting down to 2.9% from 12%. To maintain tech’s relative sway in the blue-chip index, the overseers added Salesforce.com, ending Exxon Mobil’s long run. Amgen and Honeywell also joined, replacing Pfizer and Raytheon. Tesla Inc.’s 5-for-1 split also took effect, sending the shares up more than 10%.
Elsewhere, European shares slumped. Equities in Japan outperformed peers in Asia, bolstered by Berkshire Hathaway Inc.’s purchase of stakes in five major trading companies. The yen gave back some of Friday’s gain, the biggest in five months, as Japan searched for a new prime minister. Silver rose, outperforming gold.
Here are some key events to watch this week:
* Reserve Bank of Australia hands down its policy decision Tuesday.
* ISM manufacturing data is due Tuesday in the U.S, Australia GDP is due Wednesday.
* U.S. jobless claims for the week ended Aug. 29 are due Thursday.
* U.S. jobs report Friday is forecast to show payrolls continued to rebound in August from virus lows.

Here are the main market moves:
Stocks
* The S&P 500 Index fell 0.2% as of 4 p.m. New York time.
* The Stoxx Europe 600 Index fell 0.6%.
* Japan’s Topix index gained 0.8%.
Currencies
* The Bloomberg Dollar Spot Index fell less than 0.1%.
* The euro rose 0.2% to $1.1932.
* The Japanese yen weakened 0.5% to 105.90 per dollar.
Bonds
* The yield on 10-year Treasuries dipped one basis point to 0.71%.
* Italy’s 10-year yield rose five basis points to 1.09%.
* Germany’s 10-year yield increased one basis point to -0.40%.
Commodities
* West Texas Intermediate crude fell 0.4% to $42.81 a barrel.
* Gold rose 0.2% to $1,969.53 an ounce.
* Silver strengthened 2.6% to $28.21 per ounce.
–With assistance from Joanna Ossinger, Andreea Papuc, Constantine Courcoulas and Todd White.

Have a great night.

Be magnificent!
As ever,

Carolann

When you repeat a mistake, it is not a mistake anymore: it is a decision.
                                                                 -Paulo Coelho, b. 1947

Carolann Steinhoff, B.Sc., CFP®, CIM, CIWM
Senior Investment Advisor

Queensbury Securities Inc.,
St. Andrew’s Square,
Suite 340A, 730 View St.,
Victoria, B.C. V8W 3Y7

Tel: 778.430.5808
(C): 250.881.0801
Toll Free: 1.877.430.5895
Fax: 778.430.5828
www.carolannsteinhoff.com